Halftime: Never Short Oil In 2011?

As U.S. oil prices continue to climb, there won't be a time to short oil in 2011, said Joe Terranova on Tuesday.

"For all of 2011, you're either long oil or you're flat. You're never short oil in 2011," said Terranova, chief market strategist at Virtus Investment Partners.

Oil pricesrose sharply on Tuesday, as a production platform in the Gulf of Mexico curbed more supply on top of the shut Alaska crude pipeline still keeping more than half a million barrels per day of output offline.

"Supply disruptions is something we've not had to deal with and now in this demand recovery, if you have slight supply disruptions oil is going to go a lot higher," Terranova said.

Veracruz founder Steve Cortes, on the other hand, said he's "agnostic" on oil, but expects to "certainly" short black gold at some point in the year ahead.

---UNUSUAL ACTIVITY

In the options market, Jon Najarian said there is unusual activity in Aruba Networks .

There has been lots of call buying in this technology name, said the optionMONSTER.com co-founder. He said options traders are buying both in-the-money and at-the-money calls out to April, even though there is no rumors attached.

There is, however, talk of a leveraged buyout that's driving options activity in Expedia , he said.

---JOE SALUZZI: MARKET TURNING INTO CASINO

When the Dow sold off an unprecedented 900 points on May 6, 2010, high frequency trading was widely thought to be a cause for the "flash crash."

High-Frequency Trading Turning Market Into Casino: Trader

High-frequency trading now accounts for 70 percent of all US equity trading. Joe Saluzzi of Themis Trading weighs in.

Today, high frequency trading accounts for 70 percent of all U.S. equity trading. To become familiar with high frequency trading, CNBC's Melissa Lee spoke with Joe Saluzzi of Themis Trading. Watch the video to see the complete conversation.

---CALL THE CLOSE

Before the "Fast Money" traders concluded Tuesday's "Halftime Report," they revealed what moves they plan to make and where they see the market heading.

Tiffany & Co. wasn't able to hold big gains early in the day, said Cortes. Sell retailers.

The S&P 500 seems to be holding onto support at the 1,270 level, so Najarian thinks the market could climb to 1,280.

Brian Kelly, on the other hand, thinks getting through 1,280 is a tall order. The Kanundrum Capital founder is a seller of this market.

"Dollar is strong. Equities still strong. Stay with it," Terranova said of the market. "This is what we wanted."

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For Joe TerranovaTerranova is Chief Market Strategist of Virtus Investment Partners, LTDVirtus Investment Partners Owns More Than 1% Of (ABAX)Virtus Investment Partners Owns More Than 1% Of (AMKR)Virtus Investment Partners Owns More Than 1% Of (CCG)Virtus Investment Partners Owns More Than 1% Of (CASS)Virtus Investment Partners Owns More Than 1% Of (CSVI)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (FCFS)Virtus Investment Partners Owns More Than 1% Of (IGE)Virtus Investment Partners Owns More Than 1% Of (KRC)Virtus Investment Partners Owns More Than 1% Of (LDR)Virtus Investment Partners Owns More Than 1% Of (LPHI)Virtus Investment Partners Owns More Than 1% Of (NCRI)Virtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (XLB)Virtus Investment Partners Owns More Than 1% Of (XLV)Virtus Investment Partners Owns More Than 1% Of (XLP)Virtus Investment Partners Owns More Than 1% Of (XLY)Virtus Investment Partners Owns More Than 1% Of (XLE)Virtus Investment Partners Owns More Than 1% Of (XLI)Virtus Investment Partners Owns More Than 1% Of (XLK)Virtus Investment Partners Owns More Than 1% Of (XLU)Virtus Investment Partners Owns More Than 1% Of (SUBK)Virtus Investment Partners Owns More Than 1% Of (WDFC)Virtus Investment Partners Owns More Than 1% Of (YDNT)Virtus Investment Partners Owns More Than 1% Of (CLB)

For Brian KellyAccounts Managed By Kanundrum Capital Own (ANDE)Accounts Managed By Kanundrum Capital Own (CLF)Accounts Managed By Kanundrum Capital Own (DRYS)Accounts Managed By Kanundrum Capital Own USDAccounts Managed By Kanundrum Capital Own (GLD)Accounts Managed By Kanundrum Capital Own (IPI)Accounts Managed By Kanundrum Capital Own (JJG)Accounts Managed By Kanundrum Capital Own (MON)Accounts Managed By Kanundrum Capital Own (OSK)Accounts Managed By Kanundrum Capital Own (SDS)Accounts Managed By Kanundrum Capital Own (SEF)Accounts Managed By Kanundrum Capital Own (TBT)Accounts Managed By Kanundrum Capital Own (VXX)Accounts Managed By Kanundrum Capital Own (XLE)Accounts Managed By Kanundrum Capital Are Short The EuroAccounts Managed By Kanundrum Capital Are Short The YenAccounts Managed By Kanundrum Capital Are Short (XLF)

For Tim HoranOppenheimer & Co is a market maker in (AAPL)No disclosures in (VZ)